Advice on Dealing with loans

Bevette

Hi,

I am looking for advice (may be legal help, but unsure) Recently a member of a family was sent to prison for 3 years (Should be released next February all going well). Since they have been away, several debts / loans / direct debits has risen, as the mail gets delivered to their parents address.

So far the following has been discovered -
A bank personnel loan (amount unknown at time, but believe it could be at least £2000)
Overdraft (£600 and is almost maxed)
A credit card (£1500)
Mobile Phone contract (£50 amount for 9 months)

They have no money in the bank account and no salary going in each month. The sale of the family members car should clear the credit card. At this time the monthly payments are being made.

I am looking for advise on how to tackle the bank and phone company. Should the parents just contact them and come clean? Should the family member declare them self bankrupt?

Any help would be appreciated


Thanks

chevalier

Erm it is the prisoners debt, not theirs! Unless they signed as guarantor for any of these lines of credit, then they are under no obligation to pay it off. I would suggest that the family members write to each of the creditors and tell them of the person's imprisonment and see what they want to do from there. but maybe the CAB would have knowledge of what happens in this sort of case, or could provide you with the name of solicitors who do a free consult in your area.
chev